No economy can function without having a reliable and stable financial system. It is basically an auxiliary setup that supports the monetary transaction of people and channels the funds in the economy. The…
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All of these parts are closes dependent on each other. A good financial system makes sure that all these parts function together to make sure that the money is optimally channeled in an economy. If one part of the financial system is in conflict with the other, or if there is a distortion between the motives of the two parts of a financial system, then there are chances that the financial system will collapse. This is very dangerous for the entire economy, because when one part of financial system collapses, other parts also face the domino effect causing the economy to face serious recession and plummeting demand. Hence, it is imperative for an economy to have a stable financial system if it is to work well. (Mishkin)
Financial markets make it possible for people to trade securities. It is a good way of raising capital, transferring risk, liquidity maintenance and trading foreign exchange. The financial markets play an important role in instilling level of confidence in the investors. They know that they can invest now and liquidate in future when they need funds and allow them earn interest on their money. Examples of Financial Markets can be Stock Markets, Money Markets, Forex Markets and IPOs (Lipsey and Chrystal). A good financial system usually contains financial markets as a platform that allows the trading of financial securities and instruments. Similarly, Financial Institutions consist of those organizations that allow channeling of funds and create credit in the economy. In case these are missing in a financial system, then the economy is deprived of multiplier effect and can face serious levels of unemployment and lack of investment motives. Examples of Financial Markets include Banks, Building Societies, Leasing Companies etc. Financial Instruments are securities that are traded in the Financial Markets. These include bonds, stock, money market securities and derivatives. These are again very important
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Financial intermediaries are the first component of financial system. As the name signifies, financial intermediaries act as an intermediary or channel between two parties. The two parties are namely investors and the firms that are raising fund or savers and borrowers.
Financial crisis affects not only a country’s government but also its citizens. In this case, the government attempted to bail out some banks although it was not totally successful. On the other hand, customers were increasingly unable to keep up with their mortgage payments.
The financial crisis in the global context started during the year 2007 and gradually became a severe one with the incidents such as the fall of Lehman Brothers, in September 2008. It can also be observed that in most of the global nations such as Canada, Australia and Singapore, the economic downturn was also very influential.
As for the term financial service, Smith et al. (2012) stated that a person or an institution provides financial services if it deals in financial products, provide advices pertaining to financial products, sell and market financial products, and provide depository or custodial services.
Banks need to use financial management techniques in making investment and accepting new projects. Banking operations also account for major risks that bear capacity to affect a bank's cash flows, earnings and shareholder wealth. This emphasises the importance of risk management in the banking sector.
The fear of death that is set up in this scene -and intensified by Hitchcock's expert use of sporadic changes in camera gaze from the subjective to the authorial - continues throughout the rest of the film.
The first answer is provided as an example.
The federal government passes federal legislations, such as the No Child Left Behind Act, to which schools must measure up. NCLB mandates can directly influence the curriculum in schools. They mostly influence
In any sports activity, players are expected to adhere to professional codes of conduct that include following rules of the game and observing that no forms of cheating, in whatever forms, are undertaken. As a volunteer baseball coach